Special Report 18-July-2018
Global markets at a glance Wall Street stocks rose on Tuesday, with the Dow Jones Industrial Average posting its fourth consecutive session of gains after Federal Reserve Chairman Jerome Powell expressed an optimistic US economic view and solid earnings bolstered the outlook for a robust reporting period. In written statement Powell signalled that an era of stable economic growth may continue, but the Fed chairman was challenged in a congressional hearing by senators worried about the Trump administration's trade policies. The S&P 500 ended slightly lower on Monday following a drop in oil prices that weighed on energy shares and offset a jump in financials as Bank of America's results reinforced expectations of a strong US earnings season.Netflix shares ended the session up 1.2 percent but dropped more than 14 percent after the bell when it reported results. The company missed Wall Street forecasts for U.S. and international subscribers. Asian shares followed Wall Street higher on Wednesday as a bullish outlook from the head of the U.S. central bank buoyed the dollar, lifted Tokyo shares to a one-month top and sent gold to a one-year trough.Japan's Nikkei leapt out of the blocks with a 1 percent gain as a weakening yen promised to fatten exporters' profits.MSCI's broadest index of Asia-Pacific shares outside Japan . Previous day Roundup The Nifty50 after opening higher at 10,939.65 wiped out early gains to hit an intraday low of 10,925.60, but managed to recoup those losses in morning trade itself and reclaimed psychological 11,000-mark in later part of the session. The index hit an intraday high of 11,018.50, before closing 71.10 points higher at 11,008.The Nifty Bank index closed at 27,008.10, up 328.3 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,760.77, followed by 26,513.43. On the upside, key resistance levels are placed at 27,148.37, followed by 27,288.63. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[59.60pts], Consumption[8.00pts],PSE[63.30pts],CPSE [46.50pts],Energy[233.90pts],FMCG[-298.30pts],Auto [130.50pts],Pharma[1 39.70pts],IT[1.20 pts],Metal [54.55pts],Realty[2.65 pts], Fin Serv sector[100.80pts].
World Indices Index
Value
% Change
25,119.89
0.22
S&P500
2,813.00
0.06
NASDAQ FTSE100
7,855.12 7,626.33
0.63 0.34
22,860.31 28,254.29
0.71 0.26
DJI
NIKKEI HANG SENG
Top Gainers Company
CMP
Change
% Chg
HPCL
281.30
16.95
6.41
Hindalco
219.50
6.45
3.03
Axis Bank
537.90
15.80
3.03
SBI
259.05
7.45
2.96
ICICI Bank
266.45
7.20
2.78
CMP
Change
% Chg
HUL Tech Mahindra Bharti Airtel Dr Reddys Labs
1,681.70 646.80 342.55 2,065.30
-69.55 -10.50 -4.85 -28.65
-3.97 -1.60 -1.40 -1.37
Eicher Motors
27,153.70
-270.60
-0.99
Top Losers Company
Stocks at 52 Week’s HIGH Symbol
Prev. Close
Change
%Chg
BAJAJFINSV
6247.85
106.15
1.7
BERGEPAINT
299.55
14.45
4.82
BRITANNIA
6532.7
-94.7
-1.45
CIGNITITEC
403.45
15.55
3.85
ELECTROSL
2.7
0.1
3.7
Stocks at 52 Week’s LOW Symbol
ABAN ABGSHIP ACC ACCELYA ADORWELD
Prev. Close
Change
%Chg
106.25 5.35 1266.85 1099.25 281.35
-1.05 0.2 22.15 -1.9 -1.35
-0.99 3.74 1.75 -0.17 -0.48
Indian Indices Company
CMP
Change
% Chg
NIFTY
11008.00
71.10
0.65
SENSEX
36519.96
196.19
0.54
_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co
Special Report 18-July-2018
RECOMMENDATIONS [FUTURE] 1.BEML [FUTURE ] This script made a spinning top candle on 29 june then it started moving upward but just at its resistance level of 852 it has made a another spinning top candle with a bearish confirmation candle after that it moved continuosly in a downtrend here we can short around 780-782 tgt 770-760 sl above 790.
2.DLF [FUTURE] As per the trend this stock is moving in a downtrend 180.40 was the earlier support level below which it has closed here sell on low would be good opportunity so we advice to SELL DLF FUTURE AROUND 178-177 TGT 174-170 SL ABOVE 180.
STOCK RECOMMENDATION [CASH] EDELWEISS [CASH] From the daily chart its clear that this is getting a support at its 200 day SMA here it has rebounded in the intraday trend so we advice to BUY EDELWEISS AROUND 282-281 TGT 288-295 SL BELOW 278
MACRO NEW Trends on SGX Nifty indicate a positive opening for the broader index in India, a gain of 37 points or 0.34 percent. Nifty futures were trading around 11,062level on the Singaporean Exchange. The government has announced an infusion of Rs 11,336 crore in five public sector banks as part of its Indradhanush scheme, which was unveiled in 2015. This is the last tranche of infusion under the scheme. The five banks are Punjab National Bank (PNB), Indian Overseas Bank (IOB), Andhra Bank, Corporation Bank & Allahabad Bank.Of the Rs 11,336 crore, Rs 2,816 crore will be infused in PNB, Rs 2,157 crore in IOB, Rs 2,019 crore in Andhra Bank, Rs 2,555 in Corporation Bank, and Rs 1,790 crore in Allahabad Bank. Oil prices dropped on Wednesday after an industry group reported that US crude inventories rose last week, defying analyst expectations for a significant reduction.Brent futures were down 40 cents, or 0.6 percent, at USD 71.76 a barrel. US West Texas Intermediate crude was down 27 cents, or 0.4 percent, at USD 67.82. It settled up 2 cents at USD 68.08 a barrel the session before, coming off a nearly onemonth low. ICICI Bank yesterday said RBI has approved the appointment of Girish Chandra Chaturvedi as nonexecutive (part time) Chairman of the bank till June 30, 2021.
_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co
Special Report 18-July-2018
STOCKS IN NEWS
MOST ACTIVE CALL OPTION Symbol
Optio Strike n Price Type
LTP
Traded Volume (Contracts)
Open Interest
BANKNIFTY
CE
27,000 143.05
3,61,755
5,00,320
NIFTY
CE
11,000
87.2
2,82,208
35,32,125
BANKNIFTY
CE
26,900 204.9
2,79,240
3,10,040
BANKNIFTY
CE
27,100
93.7
2,65,570
4,24,520
RELIANCE
CE
1,100 18.15
9,739
33,37,000
HINDUNILVR
CE
1,800
4.4
8,372
18,15,000
FEDERALBNK
CE
90
2.85
8,274
44,16,500
ASHOKLEY
CE
140
1.45
8,045 1,21,80,000
MARUTIACTIVE PUT CE OPTION 9,000 111.5 5,823 MOST Symbol
Cyient: Q1 net profit at Rs 82.5 crore; revenue at Rs 1,097 crore
Fortis Healthcare approves binding investment proposal from IHH Healthcare
NIFTY FUTURE
2,83,500
Optio Strike n Price Type
LTP
Traded Volume (Contracts)
BANKNIFTY
PE
26,700
21.9
2,95,146
6,16,520
BANKNIFTY
PE
26,800
33
2,83,120
6,77,120
BANKNIFTY
PE
26,600
15.9
2,38,328
5,80,240
BANKNIFTY
PE
26,500 11.75
2,28,511
5,06,120
HINDUNILVR
PE
1,700
27.2
5,806
2,23,800
RELIANCE
PE
1,060
8.95
4,760
14,16,000
RELIANCE
PE
1,080 14.95
4,699
15,05,000
INFY
PE
1,300
4,397
10,78,800
10
Open Interest The Nifty50 after opening higher at 10,939.65 wiped out
early gains to hit an intraday low of 10,925.60, but managed to recoup those losses in morning trade itself and reclaimed psychological 11,000-mark in later part of the session. The index hit an intraday high of 11,018.50, before closing 71.10 points higher at 11,008.According to Pivot charts, the key support level is placed at 10,949.57, followed by 10,891.13. If the index starts moving upwards, key resistance levels to watch out are 11,042.47 and 11,076.93. .We recommend to BUY NIFTY FUTURE AROUND 10960-10980 TGT 11030-11070 SL ABOVE 10920.
FII DERIVATIVES STATISTICS BUY
SELL
No. of Contracts
Amount in Crores
INDEX FUTURES
25872
2267.07
29905
2642.92
INDEX OPTIONS
727139
67224.13
718527
STOCK FUTURES
203948
12754.66
STOCK OPTIONS
127459
8807.35
OPEN INTEREST AT THE END OF THE DAY
No. of Amount in No. of Contracts Crores Contracts
Amount in Crores
NET AMOUNT
304068
25380.99
-375.8555
66571.86
791499
67628.57
652.2721
193949
12486.05
1147304
80897.25
268.6112
128304
8803.20
111079
7650.41
4.1516 549.1794
INDICES
R2
R1
PIVOT
S1
S2
NIFTY
11076.00
11042.00
10983.00
10949.00
10890.00
BANKNIFTY
27288.00
27148.00
26900.00
26760.00
26512.00
_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co
Special Report 18-July-2018
RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD AUG FUT ABOVE 30520 TGT 30570 30620 SL BELOW 30480 SELL GOLD AUG FUT BELOW 30240 TGT 30200 30150 SL ABOVE 30300
SILVER TRADING STRATEGY: BUY SILVER SEP FUT ABOVE 39750 TGT 39800 39850 SL BELOW 39700 SELL SILVER SEP FUT BELOW 39200 TGT 39150 39100 SL ABOVE 39250
COMMODITY ROUNDUP COMEX Gold slipped from a one week high as a recovery in US equities clubbed with cues from latest Fed minutes weighed on the metal after prices edged up from a seven month low. The US Federal Reserve is likely to go ahead with interest rate hikes despite mounting concerns about a possible trade war, according to the minutes of the Fed's June meeting. At that meeting, the Fed raised rates and projected four rate increases in 2018 instead of three previously planned. The central bank maintained its outlook for three rate hikes in 2019. MCX Gold futures ended around Rs 30560 per 10 grams after a modest recovery. Local demand is expected to edge up in second half of the year following the current economic momentum though a good monsoon is very much required to sustain rural earnings. Gold has not gained much prominence despite this mayhem of global trade front. Meanwhile, over the past decade, the technology sector has accounted for more than 380 tonnes of gold demand annually, a significant figure in itself and almost 13% ahead of central bank net purchases during the same period. Yet gold’s role in this vibrant and growing industry is broadly unrecognised and often misunderstood, according to Aram Shishmanian, CEO of World Gold Council (WGC). Copper snapped back sharply on Monday from near oneyear lows hit in the session, as a weak dollar forced short holders to cover positions even amid simmering trade war tension. London Metal Exchange copper rallied by 1.6 percent to $6,383.50 after prices slumped to $6,221.50 a tonne on Friday, which was the weakest since late July 2017. There is still huge tightness between the July-August copper contract, suggesting shorts may have to deliver into warehouses in the next week if they can. Indian Copper is set to rebound higher in today's opening session. The prices were down at Rs 431 per kg last week. Expectations for a jump towards Rs 435 per kg cannot to ruled out in Copper. The U.S. economy created more jobs than expected in June, but steady wage gains pointed to moderate inflation pressures that should keep the Federal Reserve on a path of gradual interest rate increases this year. The global economy is starting to show signs of strain from the ??? America First??? push of U.S President Donald Trump who will hear renewed pleas to step back from a broader trade war when he visits Europe in the coming week.
_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co
Special Report 18-July-2018
RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT ABOVE 9135 TGT 8570 8670 SL BELOW 8380 SELL GUARGUM BELOW 8840 TGT 8300 8200 SL ABOVE 8510
NCDEX INDICES Index
Value
% Change
Barley Castor Seed Chana Coriander Cotton Seed Oilcake Guar Seed 10 MT
1547.5 4435 4150 4532 1707 4005
1.01 -1 2.29 -2.16 -0.67 -2.85
Jeera
18355
-1.56
4101 3528 7142
0.02 0.31 2.00
Mustardseed Soy Bean Turmeric
USDA forecasts that China's soybean imports will increase to 100.5 MMT in MY18/19 from the estimated 97 MMT in MY17/18. This forecast, is 2.5 MMT lower than USDA's June forecast. Due to the combination of the moderate increase in domestic soybean production, together with the slowdown in growth of soybean meal use, a net growth of 3.5 MMT of soybean imports in MY18/19 is expected to meet the Chinese demand growth for protein meals.
CORINDER BUY DHANIYA AUG ABOVE 4740 TGT 4800 4850 SL BELOW 4700 SELL DHANIYA BELOW 4600 TGT 4550 4500 SL ABOVE 4650
U.S. soybean exports to China continue to face strong competition from soybean exports from South America. Excessive soybean stocks and a fall in the soybean price in Brazil attributed to the 14.2 MMT of Brazilian soybean exports to China in the first half of MY17/18. This is significantly higher than the 5.2 MMT during the same period in MY16/17. Despite China's net growth of over 2 MMT of soybean imports in the first half of MY17/18, total soybean imports from the United States fell to 24.4 MMT in this period, down from the 31.6 MMT in the previous year. Chinese importers note that Brazilian soybeans have a one percent higher protein content than U.S. soybeans. Importers were previously willing to pay a slightly higher price for soybeans with a higher protein content, but with the drop in the price of Brazilian soybeans, exports are now surging As per official data, Ukraine supplied some 1 MMT of wheat to foreign markets in May 2017/18. This was down 10% from April (1.1 MMT) but up 2% from May 2016/17 (986.8 KMT). In July-May 2017/18, wheat exports totaled 16.3 MMT, or 3% less than in the same period in MY 2016/17. Ukrainian wheat shipments to the European Union and Indonesia grew substantially in the current season. In the period under review, exports to Indonesia increased to 2.1 MMT that was 31% more than in the whole of MY 2016/17.
_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co
Special Report 18-July-2018
RBI Reference Rate Currency
Rate Currency
Rate
Rupee- $
68.5350 Yen
60.9625
Euro
80.3775 GBP
90.5900
USD/INR BUY USDINR ABOVE 68.80 TGT 69.00/69.15 SL BELOW 68.65 SELL USDINR BELOW 68.50 TGT 68.35/67.40 SL ABOVE 68.65
Staging a mild recovery from a record closing low, the rupee edged up by 8 paise to end at 68.87 against the US currency, largely tracking gains in key Asian units amid weak dollar tone overseas. The domestic bourses too enjoyed a healthy weekend run. The outcome of the latest FOMC meeting minutes and the release of better-than-expected US ISM nonmanufacturing PMI numbers did little to influence the home currency even as investors braced for a potential interest rate hikes near term. Though, the rupee briefly slipped below 69 levels in midmorning deals but managed to recoup losses on apparent intervention by the Reserve Bank, coupled with greenback selling by exporters.
GBP/INR BUY GBPINR ABOVE 91.50 TGT 91.65/91.80 SL BELOW 90.35 SELL GBPINR BELOW 90.60 TGT 90.50/89.35 SL ABOVE 90.75
The Indian rupee hit a record closing low of 68.95 on Thursday following a panic demand for the US dollar coupled with savage capital flight worries. Meanwhile, fears over a slowdown in the country's economy in the midst of surging international crude oil prices and widening current account deficits predominantly kept the forex sentiment highly nervous. Meanwhile, the latest FOMC June meeting minutes showed that policy makers remain wary over intensifying trade disputes but were still on track for gradual monetary policy tightening cycle. Worrying development on escalation of trade conflict between the world's two biggest economic powers with the US President's latest salvo were largely weighed on the currency and financial markets worldwide with investors on edge awaiting the next developments. The response among major currencies, however, was fairly limited. The Chinese government retaliated immediately against US President Donald Trump's USD 34 billion tariff package with a simultaneous set of counter measures and accused Washington of starting "the largest trade war in history".
_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co
Special Report 18-July-2018
NEXT WEEK'S MAJOR U.S. ECONOMIC REPORTS TIME (ET)
REPORT
PERIOD
ACTUAL
FORECAST
PREVIOUS
--
54.6
0.0%
1.8%
MONDAY, JULY 2 9;45 am
Markit manufacturing PMI (final)
June 10 am
10 am
Construction spending
May
TUESDAY, JULY 3
TUESDAY, JULY 3
TUESDAY , JULY 3
TUESDAY, JULY 3
TUESDAY, JULY TUESDAY, 3 JULY 3
Varies 10 am
Factory orders
May
-0.1%
WEDNESD AY, JULY 4
WEDNESDAY, JULY 4
WEDNES WEDNESDAY, JULY DAY, 4 JULY 4
THURSDA Y, JULY 5
THURSDAY, JULY 5
THURSD AY, JULY THURSDAY, JULY 5 5
8:15 am
ADP employment
8:30 am 9:45 am
-0.8%
WEDNESDAY, WEDNESD JULY 4 AY, JULY 4
THURSDAY, JULY 5
THURSDA Y, JULY 5
June
--
178,000
Weekly jobless claims
6/23
224,000
227,000
Markit services PMI (final)
June
56.5
10 am 2 pm
FOMC minutes
Disclaimer
FRIDAY, JULY 6
FRIDAY, JULY 6
FRIDAY, JULY 6
FRIDAY, JULY 6
FRIDAY, JULY 6
FRIDAY, JULY 6
The information and views in this report, our website & all the service we provide are believed to be reliable, but we do not accept any responsibility (or liability) for errors of fact or opinion. Users have the right to choose the product/s that suits them the most. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that we consider reliable. This material is for personal information and based upon it & takes no responsibility. The information given herein should be treated as only factor, while making investment decision. The report does not provide individually tailor-made investment advice. Epic research recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial adviser. Epic research shall not be responsible for any transaction conducted based on the information given in this report, which is in violation of rules and regulations of NSE and BSE. The share price projections shown are not necessarily indicative of future price performance. The information herein, together with all estimates and forecasts, can change without notice. Analyst or any person related to epic research might be holding positions in the stocks recommended. It is understood that anyone who is browsing through the site has done so at his free will and does not read any views expressed as a recommendation for which either the site or its owners or anyone can be held responsible for . Any surfing and reading of the information is the acceptance of this disclaimer. All Rights Reserved. Investment in equity & bullion market has its own risks. We, however, do not vouch for the accuracy or the completeness thereof. We are not responsible for any loss incurred whatsoever for any financial profits or loss
_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co